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B-290659 Jul 24, 2002 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights The State Department was authorized to make up to $34 million of that lump sum available for the United Nations Population Fund (UNFPA). The United States contribution to the UNFPA is subject to the following conditions: "(c) CONDITIONS ON AVAILABILITY OF FUNDS.-Amounts made available under "International Organizations and Programs" for fiscal year 2002 for the UNFPA may not be made available to UNFPA unless - (1) the UNFPA maintains amounts made available to the UNFPA under this section in an account separate from other accounts of the UNFPA. "understand that a portion of the United States contribution to UNFPA will be used for HIV/AIDS activities.". The report also recognizes that the United States contribution to the UNFPA is subject to a number of conditions regarding UNFPA activities. View Decision Obligation of Funds Appropriated for "International Organizations and Programs", B-290659, July 24, 2002 The Honorable Barbara Boxer United States Senator Hart Senate Office Building Suite 112 Washington, D.C. 20510-0505 Dear Senator Boxer: This responds to your letter dated June 3, 2002, asking whether the Department of State has impounded, and failed to so report, $34 million of a fiscal year 2002 lump sum appropriation for "International Organizations and Programs." The State Department was authorized to make up to $34 million of that lump sum available for the United Nations Population Fund (UNFPA), but only after ensuring that UNFPA practices satisfied three statutory conditions. Pub. L. No. 107-115, Sec. 576, 115 Stat. 2168 (January 10, 2002). The Office of Management and Budget has apportioned the funds for the "International Organizations and Programs" appropriation for the fourth quarter, but the State Department has not yet obligated funds for UNFPA. While the State Department stated it has decided not to fund UNFPA for program-related reasons, we find the delay does not constitute an impoundment under the Impoundment Control Act, 2 U.S.C. Sec. 682. The State Department must, however, make the funds available for obligation to other programs financed by the "International Organizations and Programs" lump sum appropriation. A detailed analysis follows. THE UNFPA APPROPRIATION The Foreign Operations Appropriations Act, Fiscal Year 2002, Pub. L. No. 107-115, Title IV, 115 Stat. 2138 (January 10, 2002), contained a lump sum appropriation of $208,500,000 for the State Department for "International Organizations and Programs." Section 576 of the Act provided that "not more than" $34 million of the amounts made available under "International Organizations and Programs" for fiscal year 2002 shall be made available for the United Nations Population Fund (UNFPA). Pub. L. No. 107-115, 115 Stat. 2168. The United States contribution to the UNFPA is subject to the following conditions: "(c) CONDITIONS ON AVAILABILITY OF FUNDS.-Amounts made available under "International Organizations and Programs" for fiscal year 2002 for the UNFPA may not be made available to UNFPA unless - (1) the UNFPA maintains amounts made available to the UNFPA under this section in an account separate from other accounts of the UNFPA; (2) the UNFPA does not commingle amounts made available to the UNFPA under this section with other sums; and (3) the UNFPA does not fund abortions." Pub. L. No. 107-115, Sec. 576(c), 115 Stat. 2168. The Conference Report accompanying the legislation states that the managers "recognize and support the family planning/reproductive health activities" conducted by UNFPA, and "understand that a portion of the United States contribution to UNFPA will be used for HIV/AIDS activities." The report also recognizes that the United States contribution to the UNFPA is subject to a number of conditions regarding UNFPA activities. H.R. Conf. Rep. No. 107-345, Title V, at 93 (December 19, 2001). DISCUSSION To date the Administration has not released any fiscal year 2002 "International Organizations and Programs" appropriations to the UNFPA. As part of the President's fiscal year 2003 budget request, the State Department included a statement entitled "Summary and Highlights: International Affairs Function 150." On page 74 of this statement, the State Department shows $34 million of this appropriation as "Reserved - To Be Allocated." In light of this, we asked the State Department for its legal justification on why the delay in releasing the $34 million and the designation of those funds as "Reserved" should not be reported as an impoundment of budget authority under the Impoundment Control Act of 1974, 2 U.S.C. Sec. 684. Letter from Susan Poling, Managing Associate General Counsel, GAO, to the Honorable Colin L. Powell, Secretary of State, June 14, 2002.